Module 14: Financial Planning Framework – A to Z

Financial Assessment (Where You Are)

  • Net Worth Calculation – Assets – Liabilities = Net Worth
  • Cash Flow Statement – Monthly income & expenses का breakdown
  • Debt Analysis – Loan types, interest rates, repayment timelines
  • Tool Suggestion: Google Sheet या Mint / Walnut ऐप

Goal Setting (Where You Want to Be)

  • Short-term goals – 1–3 साल (e.g., emergency fund, vacation)
  • Medium-term goals – 3–7 साल (e.g., house down payment)
  • Long-term goals – 10+ साल (e.g., retirement, बच्चों की पढ़ाई)
  • SMART Framework (Specific, Measurable, Achievable, Relevant, Time-bound)

Budgeting & Expense Management

  • Zero-Based Budget vs 50-30-20 Rule
  • Expense Tracking Tools
  • Wants vs Needs filter
  • Cutting Unnecessary Costs (subscription audit, cash envelope method)

Risk Management (Insurance Planning)

  • Life Insurance (Term Plan)
  • Health Insurance (Individual & Family Floater)
  • Disability & Critical Illness Cover
  • Asset Insurance (home, vehicle)

Emergency Fund

  • 6–12 months of essential expenses
  • Parking options – High interest savings account, liquid funds
  • Access rules (only for real emergencies)

Debt Management

  • Debt Snowball vs Debt Avalanche method
  • Credit Card bill clearance strategy
  • High-Interest Loan repayment priority
  • Avoiding debt traps (EMI overload, payday loans)

Investment Planning

  • Asset Allocation (Equity, Debt, Gold, Real Estate, Alternatives)
  • Diversification strategy
  • SIP & Lump sum investing
  • Investment vehicles – Stocks, MFs, ETFs, Bonds, REITs, PPF, NPS
  • Risk vs Return balance

Tax Planning

  • New vs Old Regime comparison
  • Section 80C, 80D, 24(b), HRA benefits
  • ITR Filing basics
  • Avoiding common tax mistakes

Retirement Planning

  • Corpus calculation (Inflation-adjusted)
  • Best retirement investment options
  • Withdrawal strategy (SWP – Systematic Withdrawal Plan)
  • Avoiding early corpus depletion

Estate & Legacy Planning

  • Will Drafting basics
  • Nomination in bank accounts & investments
  • Trust creation (for large estates)
  • Power of Attorney (in case of incapacity)

Passive Income & Wealth Creation

  • Rental income, dividends, royalties
  • Digital assets (blogs, YouTube, courses)
  • Shariah-compliant investment options (if applicable)

Financial Review & Rebalancing

  • Annual financial check-up
  • Portfolio rebalancing (asset allocation correction)
  • Updating goals & insurance cover

Flowchart Summary

1️⃣ Assess → 2️⃣ Set Goals → 3️⃣ Budget → 4️⃣ Risk Cover → 5️⃣ Emergency Fund → 6️⃣ Debt Control → 7️⃣ Invest → 8️⃣ Tax Optimize → 9️⃣ Retirement Plan → 🔟 Legacy Plan → 1️⃣1️⃣ Passive Income → 1️⃣2️⃣ Review